As businesses seek to grow and expand, they encounter the predictable costs of acquiring new customers or business. The cost of maintaining a sales force, marketing functions and ongoing promotions are significant. These acquisition costs generally affect all businesses, regardless of industry. Similar costs are incurred by businesses attempting to purchase goods and services. Processing, selecting, screening, and awarding contracts contribute to the growing administrative cost of doing business.
Technological advances have allowed many business to conduct business via electronic communication mediums. Such business may take the form of bidding systems, virtual stores, etc. By way of this use of technology, costs associated with business have been greatly reduced. Further, many additional techniques have been developed to enhance the manner in which business is carried out.
For example, U.S. Pat. No. 4,789,928 issued to Fujisaki on Dec. 6, 1988 describes an auction information transmission processing system constructed by connecting a most significant front computer to a host computer, arranging at least one stage of a plurality of intermediate front computers and a plurality of least significant front computers so as to be connectable to the most significant front computer in a tree-like configuration via communication lines, and arranging a plurality of dealer terminals so as to be connectable to each of the least significant front computers via communication lines. Each of the dealer terminals has basic pattern data storage means storing pattern data indicative of basic display screen pictures and exhibit data storage means storing data peculiar to articles on exhibit at an auction. When the system is started up, the host computer transmits a line connection signal to the front computers. After bidding starts, each of the front computers, in response to a command from the host computer, selects a predetermined number solely of bid-up signals from each of the dealer terminals and transmits these signals to a front computer. The most significant front computer selects only a predetermined number of bid-up signals and bids up the price of an exhibit being auctioned. After a pledge to buy an exhibit is made, the least significant front computers identify pledging members based on the member registration data, and data indicative of these members are transmitted to the front computers of higher significance.
Another computerized bidding system is disclosed in U.S. Pat. No. 4,903,201 issued to Wagner on Feb. 20, 1990. Wagner describes a computerized open outcry exchange system for transacting sales of a particular futures commodity contract by members of a futures trading exchange wherein bids to purchase or offers to sell the particular commodity contract are made by the members through remote terminals and the exchange computer automatically matches offers and bids to complete the transaction.
A teleprocessing system used by QVC Incorporated is described in an article entitled “Fashion Re-Evaluates Flickering Fortunes of TV Home Shopping”, WWD, Nov. 8, 1995 V170 N87. Shoppers call from their home phones to order items advertised on their television screens. As the orders are received, QVC tallies how many people have bought each particular sale item. QVC then displays the tally for each item on the viewers' television screens in real-time. This interactive television method of buying an item provides easy remote access to a sale and real-time feedback to customers. Unfortunately, it also requires each home shopper to pay for items individually, so that the sale is limited to relatively low cost items.
In addition to the auctions mentioned above, several other on-line auctions are now being conducted over the Internet. One such auction is described in an article entitled “Cathay Pacific Airways-USA to Hold First Ever Internet CyberAuction” Business Wire, Sep. 26, 1995 p9261084. The article states that Cathay Pacific is auctioning off fifty business class seats from Los Angeles to Hong Kong. Registered bidders submit concealed bids by electronic mail over a two week bidding session. The fifty highest bidders at the close of the bidding session receive an electronic mail message instructing them on how to purchase tickets.
Auction Web also has on-line auctions, as described at their world-wide web site http://www.ebay.com. In this auction system, bidders also register and submit bids through the Internet. Items for sale are graphically displayed on the bidders' screens, in addition to the bid information for each item. Bid information is updated hourly throughout each two week bidding session. Similarly, Christie's International describes “Results of the World's First On-Line Auction” at their world-wide web site http://www.christies.com. In Christie's auction, bidders register and submit bids in the same manner as the Auction Web auction.